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2. B Company produces a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Production: Direct materials P1, 200 Direct labor 1, 400 Variable manufacturing overhead 500 Variable selling and administrative 200 Fixed costs per year: Fixed manufacturing overhead P4, 500,000 Fixed selling and administrative expenses 4,000,000 During the year, the company produced 10,000 units. The company has a beginning inventory of 40, 000 and an ending inventory of 5, 000. Required: 1. Prepare an Income Statement using a. Absorption Costing and b. Variable Costing 2. Reconcile the income. (Absorption - Variable) 2. B Company produces a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Production: Direct materials P1, 200 Direct labor 1, 400 Variable manufacturing overhead 500 Variable selling and administrative 200 Fixed costs per year: Fixed manufacturing overhead P4, 500,000 Fixed selling and administrative expenses 4,000,000 During the year, the company produced 10,000 units. The company has a beginning inventory of 40, 000 and an ending inventory of 5, 000. Required: 1. Prepare an Income Statement using a. Absorption Costing and b. Variable Costing 2. Reconcile the income. (Absorption - Variable)